As the process of formation of the 8th Pay Commission is progressing, curiosity is increasing among the employees. Meanwhile, according to a report, central government employees may get a hike in dearness allowance (DA) this month. Traditionally, the government announces a DA hike in March, which is effective from January 1 of the same year. Do you also want to know when DA will increase and how much salary will be increased? So let’s know.

Current DA status and possible increase

Currently, the DA of central government employees is 53% of their basic salary. According to recent reports, it may increase by 2%, which will increase DA to 55%. This increase is in line with the recommendations of the 7th Pay Commission.

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Understand the complete math of DA

The central government uses data from the All India Consumer Price Index Industrial Workers (AICPI-IW), which is released by the Shimla-based Labour Bureau, to determine the DA rate. According to the recently released AICPI-IW data for December 2024, the index has fallen by 0.8% to 143.7. This decline in the Consumer Price Index for Industrial Workers affects the calculation of DA, which may limit the potential increase.

Expectations of employee organizations

Representatives of central government employee organizations have also expressed the possibility of a 2% DA hike. According to Rupak Sarkar, President of the Central Government Employees and Workers Confederation, the same expectation has been expressed in their internal assessment. Apart from this, Shiv Gopal Mishra, Secretary, NC-JCM (Staff Side) has also said that the possibility of a 2% DA hike is quite strong.

Know, when will the increased DA be implemented

The final decision on the DA hike will be taken by the Union Cabinet headed by Prime Minister Narendra Modi. After getting approval, the revised DA rate is likely to come into effect from January 1, 2025.

Good news for central employees

Central employees are eagerly waiting for the increase in dearness allowance. The possible increase of 2% will provide some relief to their salary. However, the final decision will be taken by the Union Cabinet. This increase will help in maintaining the standard of living of the employees and protect them from the effects of inflation. This move of the government is a positive sign for the employees.

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